Abstract: A comparative study on the extra cellular lipase production in Solid State Fermentation (SSF) using Yarrowia lipolytica NCIM 3589 with various mixed substrates has been made. Different parameters such as moisture content, carbon level and nitrogen level of the medium were optimized. The maximum lipase activity of 9.3 units per gram of dry fermented substrate (U g ds-1) was observed with mixed substrate of sugarcane bagasse and wheat bran in seven days of fermentation.